of Agriculture

A Report from the Economic Research Service Animal byproducts contribute to the bottom line of the U.S. meat industry. Byproducts (edible offal (including variety meats), inedible offal, hides and skins, blood, fats, and tallow) include all parts of a live animal that are not part of the dressed carcass and constitute about 30 percent of the liveweight of hogs and about 44 percent of the live-weight of cattle. Byproducts from animal slaughter provide raw materials used in phar-maceutical, cosmetic, household, and industrial products. Exports of edible offal also contribute to the value and profitability of the U.S. meat processing industry in a way that leads to higher prices for livestock producers, as byproducts account for more than 23 and 35 percent of the volume of beef/veal and pork exports, respectively. Regression analysis indicates that a 10-percent increase in the steer byproduct drop value adds a 1-percent increase in the five-area weighted average price for all grades of steers. U.S. exports of beef/veal and pork edible offal have increased in recent years, mostly due to popula-tion growth, income growth, and consumer preferences for variety meats, especially in Asia. Income growth in the global marketplace, however, may have varied effects on the consumption and trade of variety meats